Flashcards in Unit 8- Estates, Tenancies, Condominiums, Cooperatives and Time Sharing Deck (47)
Land is defined as
The surface of earth and everything attached to it by nature including products beneath the surface, downward to the center and upward to infinity.
Define Real Estate
Land and ALL HUMAN made improvements permanently attached to it
Define Real Property
All the Real Estate plus the "legal bundle of rights" inherent in the ownership
what is NOT INCLUDED as Real Property?
Cemetery Lots or right of Burial
Renting of Mobile Home Lot or RV lot in a Mobile home or trailer park.
Describe the two types of SURFACE RIGHTS
-includes the land abutting a flowing waterway such as a river/stream
-includes land abutting tidal bodies such as oceans/seas
The gradual UNCOVERING of land by receding water where by the newly uncovered land belongs to the landowner is called...
Real Property is defined as...
Land and improvements to land
Personal Property ( CHATTEL) is defined as...
Items having a limited life that are easily moveable from one place to another.
Real property becomes personal property through this...
An Act of Severance.
I.e. Timber. The tree is real property until you cut it down.
Personal property becomes real property by...
What is a FIXTURE?
Personal property that has been attached to or made part of real estate and is now considered REAL PROPERTY
I.E. A BATHTUB.
The LEGAL test for fixtures consists of these 4 measurements:(IRMA)
I-intent of parties (was the intent to make that item a fixture?)
R-relationship was it buyer/seller or landlord/tenant. TENANTS
are required to leave any item they have attached to a landlord's
M- method or degree of attachment. If removal of the item would
result in damage to the real property, the article is classified
as a fixture.
A- adaptation. Seeks to determine if the item was designed for or
necessary to the normal use of a specific property. If adapted or
custom built it will likely be considered a fixture
i.e. Hurricane Shutters
The term ESTATE refers to...
The degree, quantity, nature, and extent of interest a person can have in REAL PROPERTY
What are the two general groups of ESTATES?
LEASEHOLD ESTATES(non-freehold estates)
What are the characteristics of FREEHOLD ESTATES
They are estates of OWNERSHIP INTEREST for an indefinite period of time.
If that ownership interest is INHERITED, it is said to be owned in FEE SIMPLE.
If that ownership is MEASURED BY THE LIFETIME OF THE INDIVIDUAL, it is said to be a LIFE ESTATE.
What are the characteristics of a FEE SIMPLE estate?( also referred to as " fee" or " fee simple absolute"
-it contains the largest bundle of legal rights
-it is ownership with complete power to use, dispose of and to
allow property to descend to heirs
-highest type of real property interest
-MOST TITLE TO PROPERTY IS HELD IN FEE SIMPLE
What are the characteristics of a LIFE ESTATE?
-fewer rights than fee simple
-ownership is only for a period of the lifetime of an individual
-owner must pay taxes and property insurance
-owner must keep current any mortgages or liens to preserve the property.
Describe the characteristics of a CONVENTIONAL life estate.
-it is created by the person who HOLDS TITLE in real property.
-it occurs when the GRANTOR( seller) transfers the freehold estate to an individual for a period of time measured by that persons lifetime.
-it allows for the GRANTEE (buyer) or the person receiving the estate, to have use and title during life of the holder or life of whomever interest is based in ( simply put-the OWNER of property)
-when a life estate ends, the property reverts ( estate in reversion) to the original GRANTOR( previous owner) OR goes to a third party called a REMAINDERMAN.
What characterizes an ESTATE IN REVERSION?
It is when a life estate reverts back to the original owner.
I.e. John Smith transfers to Mary Smith. Mary Smith dies. Property goes back to John Smith.
What characterizes a REMAINDERMAN?
A REMAINDERMAN owns interest in a REMAINDER ESTATE while a LIFE ESTATE exists.
-The "deed" establishing the life estate designates the remainderman.
- Remainderman acquire a FEE SIMPLE estate in severalty (only heir) or concurrent ownership (more than 1 heir- i.e. 2 children)
i.e. Sue Jones deed states she owns the property for her lifetime. Upon her death, her property transfers to her sons Matt and Adam.
Sue has a LIFE ESTATE
Matt and Adam have a REMAINDER ESTATE
What are the SIZE restrictions on HOMESTEAD property?
It is restricted to 160 acres outside a city/municipality OR up to 1/2 acre located within the city
According to FL Statute, The allowable tax exemptions for HOMESTEAD property are..
$25,000 base exemption for city, county and school board on properties valued from 25k-75K.
On properties valued over $75K, there is the $25,000 base exemption for city, county and school board PLUS an additional $25,000 for city and county.
How is the TAXABLE VALUE of a home calculated
It is calculated by taking the ASSESSED PROPERTY VALUE and subtracting the qualifying EXEMPTIONS.
what are the characteristics of Non-Freehold Estates or LEASEHOLD Estates?
-They have a KNOWN duration and DO NOT INVOLVE OWNERSHIP interest
-it is interest in real property that TENANT possesses under a LEASE. The LANDLORD possesses a REVERSION ESTATE because at lease end, the property rights revert back to them.
- it is measured in calendar time.
What are the three types of LEASEHOLD ESTATES?
1-ESTATE FOR YEARS
-tenancy with a specific start and end date
- any length of time from less than a year
to a period of many years
-created by WRITTEN lease agreement
- it establishes interest in real property for
the tenant but does not convey actual title
or right of disposition
2- TENANCY AT WILL
- Lease agreement with a beginning date
but no fixed termination
i.e. week to week, month to month
- May be written or Oral (parol)
- All landlord-tenant obligations exist
- notice of termination is required
-sale of property or death of owner will
3- TENANCY AT SUFFERANCE
- tenant stays in possession of property
beyond ending date of legal tenancy
without the consent of landlord
- tenant has no ESTATE of TITLE but only
"naked possession" and is not entitled of
notice to terminate
- payment and acceptance of rent alone
MUST NOT be construed to be renewal
- if tenant "holding over" is continued with
the written consent of the lessor (landlord)
then the tenancy is a tenancy at will.
What are the two forms of OWNERSHIP in which people hold FREEHOLD ESTATES?
Sole Ownership and Concurrent Ownership
What are the Characteristics of Sole Ownership
Property is held by 1 owner
What is the term synonymous with Sole Ownership?
when a person owns an estate in severalty, they are the sole owner. When property passes to a spouse that spouse now owns an estate in severalty as they are now the sole owner.
What are the characteristics of concurrent ownership?
it is ownership of two or more persons at the same time.